Super Changes Checklist

SuperChanges

Perpetual Private Insights

Legislative changes to super are only weeks away – from 1 July 2017 the amount you can contribute to super will be capped and there will be a tax hike on contributions for high income earners.

The result?

Less money in the low-tax super system to support your lifestyle in retirement.

That’s the bad news. The good news is you still have time to top up your super before the new rules come in.

So we’ve created this checklist to help you take action if you need to.

After-tax contributions are being cut from $180k pa to $100k pa and you’ll only be able to make them if your total super is less than $1.6 million.  You may be eligible to fast track up to $540k of contributions (even if your super balance is, or will be, more than $1.6 million), if you act before 1 July 2017.

Before-tax contributions are being cut from $30-35k pa to $25k pa from 1 July 2017.

Amounts in excess of $1.6 million in pension phase must be commuted back into accumulation phase or out of the super system entirely.

Fund earnings and capital growth in TtR income streams will no longer be tax-free. Unless you need the pension income, or can retire and convert it to a normal account-based pension, it may be in your interests to roll your TtR income stream back to super.

If your income is between $250-300k, the tax you pay on concessional contributions (before tax) doubles from 1 July 2017.

To take advantage of CGT relief, certain trustee decisions and actions must be taken before 1 July 2017.

Your super pension arrangements and death benefit nominations may need to be reviewed to ensure that as much as possible can remain in the concessionally taxed superannuation environment upon the death of a partner.

SPEAK TO A SUPER EXPERT

A Perpetual adviser can help you cut through the complexity of super and ensure you have the right strategy in place for your personal circumstances

Perpetual Private advice and services are provided by Perpetual Trustee Company Limited (PTCo) ABN 42 000 001 007, AFSL 236643.

This information has been prepared by PTCo. It contains general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial or other adviser, whether the information is suitable for your circumstances. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. This information, including any assumptions and conclusions, is not intended to be a comprehensive statement of relevant practice or law that is often complex and can change.